Taxes

Tax Scams to Watch Out For

 
Tax Scams to Watch Out For While tax scams are especially prevalent during tax season, they can take place any time during the year. As a result, it’s in your best interest to always be vigilant so you don’t end up becoming the victim of a fraudulent tax scheme.
 

Here are some of the more common scams to watch out for.
 

Phishing

Phishing scams usually involve unsolicited emails or fake websites that pose as legitimate IRS sites to convince you to provide personal or financial information. Once scam artists obtain this information, they use it to commit identity or financial theft.
 

It is important to remember that the IRS will never initiate contact with you by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media. If you get an email claiming to be from the IRS, don’t respond or click any of the links; instead forward it to phishing@irs.gov. Continue reading

Key Retirement and Tax Numbers for 2019

Key Retirement and Tax Numbers for 2019 Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2019.

Employer retirement plans

  • Employees who participate in 401(k), 403(b), and most 457 plans can defer up to $19,000 in compensation in 2019 (up from $18,500 in 2018); employees age 50 and older can defer up to an additional $6,000 in 2019 (the same as in 2018).
  • Employees participating in a SIMPLE retirement plan can defer up to $13,000 in 2019 (up from $12,500 in 2018), and employees age 50 and older can defer up to an additional $3,000 in 2019 (the same as in 2018).

Continue reading

Ten Year-End Tax Tips for 2018

 

Ten Year-End Tax Tips for 2018Here are 10 things to consider as you weigh potential tax moves between now and the end of the year.
 

1. Set aside time to plan

Effective planning requires that you have a good understanding of your current tax situation, as well as a reasonable estimate of how your circumstances might change next year. There’s a real opportunity for tax savings if you’ll be paying taxes at a lower rate in one year than in the other. However, the window for most tax-saving moves closes on December 31, so don’t procrastinate.
 
 

2. Defer income to next year

Consider opportunities to defer income to 2019, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a year-end bonus or delay the collection of business debts, rents, and payments for services. Doing so may enable you to postpone payment of tax on the income until next year. Continue reading

W-4 Update

 

2018 W-4 ChangesIRS has released a bulletin stating that they have completed the 2018 withholding tables based on the new tax law and that all employers must start using them no later than February 15, 2018. However they have not completed the new W-4’s or the calculator that can be used in order to determine how much you should have withheld. So in the next month you should see your federal withholding decrease resulting in you having a higher paycheck.

 
So what does this mean for you at this time? You currently do not have to do anything. When you come into the office for your appointment we will look at your situation for next year’s
taxes. If we feel the need, we will recheck your withholdings halfway through the year to make sure that you are comfortable with the amount you will owe or the amount that you have as a
refund.

 
Susan

 

2018 Tax Law Changes

 

2018 tax lawThere are many new changes to the tax law starting on January 1. 

 
Please download this 2018 Tax Letter for all the details.

 

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